MIBO - Options on FTSE MIB

FTSE MIB index

European

9.00 am - 5.40 pm

Options contracts on the FTSE MIB index are quoted in index points.

Each index point has a value of 2.5 €.

The value of the contract is determined by the product of the strike price (in index points) and the value of the contract multiplier.
Example: the value of an option contract on the FTSE MIB index with a strike price equal to 32.500 index points is 32.500 x 2.5 = 81.250 €.

The premium paid is equal to the value of the option premium multiplied by the contract multiplier.
Example: the contract premium with a strike price of 32.500 index points and option premium on the FTSE MIB equal to 650 index points is 650 x 2.5 € =1,625 €.

The premium is settled in cash only the first day after the trading day by the clearing and settlement organisation Cassa di Compensazione e Garanzia.

In each trading session 10 expiration dates are quoted:

- the 4 three-monthly expiries in March, June, September and December
- the 2 nearest monthly expiry dates
- the 4 six-month maturities (June and December) of the two years subsequent the current year
- the 2 annual maturities (December) of the third and fourth years subsequent the current year

New options are quoted on the first trading day following expiration.

The contract expires on the third Friday of the expiration month at 9.05 am. If the Exchange is closed that day, the contract expires on the first trading day preceding that day.

Trading in any contract closes on expiry of that contract (9.05am on expiration day).

For each maturity up to twelve months (monthly and three-month maturities) at least 15 exercise prices shall be traded for both the call and the put series, with intervals of 250 index points for the first maturity and 500 index points for the subsequent maturities.

For the maturities more than twelve months at least 21 exercise prices shall be traded for both the call and the put series, with intervals of 1,000 index points. But, when six month maturities fall within the twelve months, new exercise prices shall be introduced with intervals of 500 index points, up to at least 15 exercises prices shall be traded for both the call and put series, with intervals of 500 index points.

The daily closing price is established by the clearing and settlement organisation Cassa di Compensazione e Garanzia.

The settlement price is equal to the value of the FTSE MIB index, calculated on the opening prices of the financial instruments that make up the index recorded on the last day of trading. If the opening price of any financial instrument on the index has not been established by the end of the trading session, Italian Exchange fixes the price in order to establish the value of the index on the basis of the prices recorded in the last session and takes into account any other relevant objective elements available.

In-the-money options are automatically exercised on the expiration date. Exercise by exception is possible between 10.00-10.30 am. When the option buyer exercises his option the Cassa di Compensazione e Garanzia designates the writer by means of a draw.

Settlement is paid in cash only. It is the difference between the exercise price and the reference value of the index on the first trading day after the contract begins, taking into account the number of contracts exercised and the value of the multiplier. Settlement is made through the clearing and settlement organisation Cassa di Compensazione e Garanzia.

None.

Margin table

Available.

Options on the FTSE MIB index can be bought and sold in the USA as expressed in the no action letter from the SEC.